Government bonds slide, call rate remains firm

The government bonds prices fell sharply following heavy selling pressure from banks and corporates amid lack of demand from investors.
Overnight call money rate continued to rule firm on the back of good demand from borrowing banks amid tight liquidity conditions in the banking system.
The 8.83 per cent 10-year benchmark bond maturing in 2023 dropped further to Rs 99.6225 from Rs 100.20, while its yield rose to 8.89 per cent from 8.80 per cent last Friday.
The 8.12 per cent government security maturing in 2020 declined to Rs 94.45 from Rs 94.87 previously, while yield spurted to 9.23 per cent from 9.15 per cent.

The 8.28 per cent government security maturing in 2027 also slumped to Rs 92.10 from Rs 92.54, while yield moved up to 9.32 per cent from 9.25 per cent.
The 7.28 per cent government security maturing in 2019, the 8.24 per cent government security maturing in 2027, 9.20 per cent government security maturing in 2030 and the 7.16 per cent government security maturing in 2023 all quoted lower at Rs 92.83, Rs 91.99, Rs 99.45 and Rs 87.10, respectively.
The overnight call money rate ended higher at 7.70 per cent from 7.00 per cent previously after moving in a narrow range of 8.10 per cent and 7.00 per cent earlier.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 238.17 billion in 36-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning.